Vedanta Resources is bracing itself for a crucial ruling by the Indian government this week on the company's planned bauxite mine in the eastern state of Orissa, which could finally lead to a decision on whether the project gets the go-ahead.

George Osborne delivered a public reprimand yesterday to Liam Fox, the Defence Secretary, over his demands for special help in paying the £20bn bill to renew Trident. The Chancellor told his Cabinet colleague that the cost would have to be fully met from the Ministry of Defence's core budget.

India welcomed the head of Burma's isolated military government yesterday, despite international criticism and extended aid to the regime for railroad and agriculture projects, as New Delhi competes to assert its influence in the region.

Burma's top military general began a five-day visit to India yesterday for talks aimed at deepening ties between the two South Asian neighbours. Pro-democracy advocates protested his arrival and promised to step up their demonstrations.